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Sheridan Company manufactures two products, Mini A and Maxi B. Sheridan's overhead costs consist of setting up machines, $830000; machining, $1950000; and inspecting, $630000. Information

Sheridan Company manufactures two products, Mini A and Maxi B. Sheridan's overhead costs consist of setting up machines, $830000; machining, $1950000; and inspecting, $630000. Information on the two products is:

Mini A

Maxi B

Direct labour hours

13000

24000

Machine setups

600

400

Machine hours

29000

31000

Inspections

800

700

Overhead applied to Maxi B using activity-based costing is

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